10 Reasons Canadians Don't File A Tax Return on Time

8/14/2019 10 Reasons Canadians Don't File A Tax Return on Time

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We take your taxes personally!

Ten Reasons Peop leDont Fi le a Tax

Return

By Neel E. Robert s

Revised February 2 008 2008 PTC Canada


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Ten Reasons People Dont File a Tax Return PTC Canada

Table o f Cont ent s

Ten Reasons People Dont File a Tax Return 2

Free Tax Booklets 6

Our Free Services 6

Other Services by PTC Canada 7

Reference Books and Guides 8

Contact Information 9

CRA Contacts 10

2008 PTC Canada www.ptccanada.com/ Page 1


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Ten Reason s People Don t

Fi le a Tax Ret urn

Did you know there are over 1,000,000 late returns filed in Canada each year?This is a substantial market, and there are a variety of reasons for it. The purposeof this handout is to clear up some myths while sharing a few facts about whyreturns dont always get filed by April 30th. Some may be familiar to you, whileothers will surprise you. I trust you will find this as useful as others have!

1. You may not be required to.

There is a small minority of taxpayers who are not required to file. Examplesare children under 16, and spouses who are at home full-time and have little orno income. Also, those deemed non-residents, and cleared estates afterdeceased returns are filed. You can contact CRA at 1-800-959-8281 or discussyour situation with a tax professional to see if any of this applies to you.

2. Information is missing.

Whether you were employed, self-employed, or not working during the year,you will require certain documentation to file a return. If you had noreportable income, the only information you will likely need is personal, suchas name, address, SIN, date of birth, marital status, etc. If you were workingor had investment/support income and are missing T-slips, you can call CRAat 1-800-959-8281 and they will mail them to you. If you were self-employed,a landlord, or had non-T-slip income and were required to keep records, youshould consult a tax professional on how to compile missing information. Youmay be required to estimate some figures, and a skilled expert can substantiatethem based on your situation and comparable files.



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3. You have not been asked to.

It can take a few years for CRA to catch onto late filers. Some people getaway without filing for many years, because there is no sure-fired way to tellif a taxpayer has moved out of the country, stopped working, or died. A

common scenario is for a taxpayer to apply for a loan, and only when askedfor their tax returns does CRA realize they havent filed!

4. You are deferring refunds and benefits.

Some taxpayers look on their refunds as an annual windfall and treat their taxaccount like a savings account. There is nothing legally wrong with this, aslong as you realize you are giving the government an interest-free loan withno benefit to you. A few people take this a step further, by banking a fewyears of refunds for, say, a deposit on a house or car. This is of no benefit to

the taxpayer, and they should consult a financial planner.

5. Youre not sure of your situation.

In a family, its common for one person to handle the filings for two or morepeople without the others being aware of whats going on. Now, suppose thisperson leaves or dies. Unfiled returns can go on for years before the othersrealize they havent received a refund or GST credits, or a request to fileletter shows up in the mail. This is when its time to see a tax professional!

6. You may owe a lot of money.

This is quite common for those who are self-employed and havent paidinstalments to ease the bite at tax time. Before you assume you owe a lot,speak to a tax professional. You may be able to use deductions, past losses,and expenses to lower your liability. Also, CRA has a variety of programs,such as the Voluntary Disclosures Program and the Fairness Act, that mayeliminate interest and penalties normally applied to your unpaid balance. Inalmost every case Ive handled, the client was glad they reviewed theirsituation with me, because they found thousands of dollars, even after payingprofessional fees!



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7. You believe taxes are optional in Canada.

I hate to say this, but many naive and underhanded people fall into this trap.The truth is that every level of government has the right to tax its residentsand users of services. There is no such thing as optional taxes, because you

can guess which option people would choose. Common sense tells us thatgovernments require tax revenue to fund expenses and operations that benefiteveryone. While some countries, such as the Bahamas and Cayman Islands,are income-tax-free, most arent, and deliberate non-payment is consideredevasion and subject to prosecution. Dont listen to these idiots, as its notworth going to jail. Stealing is stealing!

8. You are avoiding claims on your refund and benefits.

Some taxpayers owe money to other government agencies or authorized

claimants. These agencies and claimants may be entitled to receive thetaxpayers refund or benefits in priority to the taxpayer. If the taxpayer knowsthis, they may put off filing until these claims are settled, or they may hopethe claims disappear. Unfortunately, the latter rarely happens, and a taxprofessional usually cannothelp you. If you are in this situation, get in touchwith the appropriate agencies, make sure their claim is accurate, and find outwhat is required to settle it. Be aware that some agencies, such as maintenanceenforcement and student loans, are exempt from bankruptcy lawsyou haveto pay them no matter what!

9. Tax treaties and exemptions

Depending on the tax treaty, some individuals are exempt based on theircountry of residence or birth status. For example, a person working in Canadaon a temporary work visa is still employed by the parent company outsideCanada, even though they are living and getting paid in Canada. Theseindividuals should discuss their situation with the International Tax Office inOttawa, 613-267-5177, as they may be required to file to qualify forexemption.

Most card-carrying First Nations residents are exempt from paying incometaxes, but certain rules still apply, such as earning money on a reserve. Theseare marked on the T4. Also, because benefits such as GST and Child TaxBenefits require a filed tax return, these people are still obligated to file if theywant to receive them!



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Free Tax Book le ts

We offer other tax booklets, worksheets, and information that may be helpfulto you. These include booklets for:

1. Canadian Tax Secrets Guide2. Employment and Commission Expense Tax Booklet3. Investment Tax Booklet4. Rental Property Tax Booklet5. Small Unincorporated Business Tax Booklet6. Farming Income7. Personal Tax Organization Checklist (Everyone can use this.)

You can download these and much more from our website

(www.ptccanada.com under Resources) or we can arrange to have them sent toyou.

Our Free Servic es

1. Tax booklets, guides, worksheets, and preparation assistance2. Seminars and information meetings3. Investment opportunities4. Mail and e-mail updates5. 24/7 support via phone, fax, e-mail, courier, and mail6. Internet filing and interactive website7. Mobile tax services in certain areas8. First consultation and personal assessment

Tip: If you are not a client but want regular updates, you can join ourcomplimentary update service. Contact us and well start you today. There is no

cost or obligation, and we love giving away free stuff!



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Ot her Servic es by PTC Canada

At PTC Canada, we are a network of Canadian tax and financial professionalswho are specialists in our fields. We are committed to providing you with tax and

financial expertise and assistance if you are affected by CRA (formerly RevenueCanada). Our goal is to provide insight and help to the taxpayer so that our clientscan make informed decisions. Our philosophy is commitment to integrity andwin/win solutions. Our services now consist of:

1. All types of tax preparation, planning, and consulting2. Corporate tax returns3. General accounting4. Book and record keeping5. Financial planning and investment services

6. U.S. and Quebec tax returns7. Bankruptcy and debt consultation8. Legal tax matters9. Client representation to CRA10.Overseas taxes and relocation assistance11.Later-filer preparation12. Previous years corrections and adjustments up to 15 years



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Referenc e Book s and Guides

I always recommend getting free stuff first and hope this booklet and otherPTC Canada publications have been helpful. CRA also publishes a variety ofTax

Guides and Pamphlets every year, which you can get by mail by calling the FormsCentre at 1-800-959-2221. You can also access their list offorms and publications.

Here are a few more things worth looking into:

1. PTC Canada has a free Canadian Tax Secrets Guide that you can downloadfrom our website at www.ptccanada.com, or contact us and we will send it toyou.

2. I also recommend Tim Cestnicks Winning the Tax Game 20__ (for whatever

year you are doing), available at your local bookstore or www.chapters.ca forabout $25. The cost is deductible, and I believe you will find more thanenough information to recover your investment of time and money. Go toTims website, or contact Tim at [email protected] if you wish to discusshis work or other strategies.

3. Another book for about the same price is The 30-Minute Tax Solution by taxexpert Evelyn Jacks of the Knowledge Bureau. You can get it at your localbookstore or by calling Evelyn at 1-866-953-4769.

mailto:[email protected]:[email protected]


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Contac t In fo rmat ion

In this booklet, I have given you some contact information that may interestyou. Below is my contact information, as well as CRAs. If you are looking for

something else, please contact me.

My contact information:

Neel Roberts, President and FounderPTC CanadaBox 1347Vulcan, Alberta, CanadaT0L 2B0Tel: 866-485-2683

Fax: 866-485-2761E-mail: [email protected]: www.ptccanada.com

mailto:[email protected]:[email protected]:[email protected]


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CRA Cont ac t s

Service Toll Free Number

General Services 1-800-959-8281

Refund Enquiries 1-800-959-1956

Business Number Enquiries 1-800-959-5525

Child Tax Benefits 1-800-387-1193

GST Credit-Personal 1-800-959-1953

Forms 1-800-959-2221Collections 1-800-332-1312

All other Government of Canada Services 1-800-622-6232

Alberta Family Employment Tax Credit 1-800-959-2809

Fax Number-Depending on your location Call General Services

Web Site www.cra-arc.gc.ca

Overseas Tax Services-Ottawa 1-800-267-5177

Overseas Tax Services-Outside Canada Collect 613-952-3741

Local Tax Center Call General Services

Note: Toll free numbers work across Canada.


Documents

10 Reasons Canadians Don't File A Tax Return on Time